Abstract

[From the Introduction]. The three years since the start of EMU have been characterised by an extraordinary degree of volatility in global financial and other markets (oil, etc.). Most official comments have so far focused on the fact that Europe has remained an ‘island of stability’. But this selfcongratulatory tone cannot mask the fact that EU institutions have generally not been in the forefront of the efforts to stabilise the global economy. This is partly understandable as most of the volatility originated outside the EU. But just ‘putting one’s own house in order’ does not seem to be sufficient when global economic (or political) stability is at stake, as recent events amply demonstrate. This note will concentrate on two particular aspects of this issue, namely 1) the absence of the EU in the efforts to contain emerging markets’ volatility and 2) the inability of the EU to develop a coherent strategy for the use of its economic instruments in the Middle East.